Shares of the San Diego company at last check surged 27% to $50.52.
Teradata now expects to post adjusted earnings of 67 cents to 69 cents a share, up from its guidance of 38 cents to 40 cents.
Analysts surveyed by FactSet had called for earnings of 39 cents a share.
The company said in a statement that in Q1 it performed strongly across all revenue categories.
So total revenue was "comparable to the fourth quarter of fiscal 2020," instead of its guidance that revenue would come in lower than the fourth-quarter figure but higher than it was in the year-earlier first quarter.
In February the company posted stronger-than-expected fourth-quarter results including revenue of $491 million.
The FactSet consensus is calling for first-quarter revenue of $448.8 million. Teradata is scheduled to report earnings on May 6.
Some analysts reacted cautiously to Teradata's announcement.
"While these preliminary results look promising, we caution investors that the quality of the beat (hardware vs. software) is important to understand and that consensus expectations/guidance were extremely conservative to begin with," Barclays analyst Raimo Lenschow said in a research note.
Morgan Stanley analyst Katy Huberty said that "the magnitude of the revenue and EPS beat is surprising given about 70% of revenue is recurring, and it's not clear from the press release what the source of strength was other than that they saw strength across all revenue lines."
JMP analyst Patrick Walgravens was more optimistic about the preliminary results and increased his 2021 earnings estimate to $1.95 a share from $1.56 and his 2022 earnings estimate to $2.23 a share from $1.87.
Walgravens, who maintained his market outperform rating, said in a research note that he sees "Teradata as an excellent opportunity for capital appreciation," as he thinks the company is undervalued.